Happy Dude
Established Member
- Joined
- Oct 13, 2006
- Posts
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So the dip in the listed share price is related to the placement offer (presumably to existing shareholders)?
In the world of gold miners and explorers there really doesn’t have to be any reason for a share price to fall or rise. One of my miners has done both in the last 2 weeks even though nothing had changed.So the dip in the listed share price is related to the placement offer (presumably to existing shareholders)?
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This is fairly normal behaviour for any stock but is probably amplified in a lower priced stock.shares dive after discounted placement
Yeah it is interesting how the market sees going cap in hand, especially when not in obvious financial strife.This is fairly normal behaviour for any stock but is probably amplified in a lower priced stock.
Placement represented about 10% of previously outstanding shares.So the dip in the listed share price is related to the placement offer (presumably to existing shareholders)?
In the world of gold miners and explorers there really doesn’t have to be any reason for a share price to fall or rise. One of my miners has done both in the last 2 weeks even though nothing had changed.
But if the shares issued increased the value of the company by 10% (which they didn't because they were issued at a 13% discount), then the price shouldn't change.
So, the theoretical drop should have been about 1.3%
That it wasn't I think is because (rightly or wrongly) the market thinks/presumes/acknowledges that those putting up $M150 have a good idea of the accurate value of the company and that becomes the new BUY price, short-term (longer-term the market puts a "value" +/- to the company of the funding).